NEC Capital Solutions Ltd. (8793) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

J Trust Co., Ltd.

AIFUL Corp.

NEC Capital Solutions Ltd.

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Ricoh Leasing Co., Ltd.

AEON Financial Service Co., Ltd.

Why is NEC Capital Solutions Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.71%

Poor long term growth as Operating profit has grown by an annual rate of -1.26%

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 17,780.85
DEBT-EQUITY RATIO (HY) Highest at 761.48 %
INTEREST(Q) Highest at JPY 47 MM

With ROE of 4.93%, it has a very attractive valuation with a 0.72 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.49%, its profits have fallen by -22%

Underperformed the market in the last 1 year

The stock has generated a return of 8.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NEC Capital Solutions Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NEC Capital Solutions Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NEC Capital Solutions Ltd.

8.09%

0.23

18.40%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.90%

EBIT Growth (5y)

-1.26%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.38%

Dividend Payout Ratio

48.87%

Pledged Shares

Institutional Holding

ROCE (avg)

25.85%

ROE (avg)

6.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.72

EV to EBIT

2.72

EV to EBITDA

0.55

EV to Capital Employed

0.37

EV to Sales

0.08

PEG Ratio

Dividend Yield

ROCE (Latest)

13.70%

ROE (Latest)

4.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

NET PROFIT(Q)

Highest at JPY 2,658.58 MM

RAW MATERIAL COST(Y)

Fallen by -0.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 0.36 times

NET SALES(Q)

Highest at JPY 99,179 MM

PRE-TAX PROFIT(Q)

Highest at JPY 3,481 MM

EPS(Q)

Highest at JPY 113.82

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 17,780.85

DEBT-EQUITY RATIO (HY)

Highest at 761.48 %

INTEREST(Q)

Highest at JPY 47 MM

Here's what is working for NEC Capital Solutions Ltd.

Net Sales

At JPY 99,179 MM has Grown at 45.68%

over average net sales of the previous four periods of JPY 68,079.25 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 2,658.58 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 99,179 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 3,481 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 113.82

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 0.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for NEC Capital Solutions Ltd.

Interest

At JPY 47 MM has Grown at 20.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 17,780.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 47 MM

in the last five periods and Increased by 20.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 761.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio